Bank of Canada Rate Announcement: March 6, 2024

Rodney Biggar, Mortgage Broker

Today’s Bank of Canada announcement gives us a bit of a breather. The overnight target rate didn’t budge, hanging tight at 5.00%. This keeps the prime lending rate at a steady 7.2%. Seems like the Bank of Canada is kicking back, waiting on some solid CPI data before making any big moves.

Now, the economy—it’s holding up okay, but the experts say it’s just a blip and nothing to get too fussed about in terms of inflation.

If you’re considering buying a home or need to renew your mortgage, here’s the scoop: First, hope that inflation continues on its downward spiral. Second, pray that bond yields stay low. If things line up, we might catch a break on mortgage rates come summertime.

The Bank mentioned they’re still monitoring inflation risks and want to see more easing in core inflation. They also emphasize balancing demand and supply, inflation expectations, wage growth, and corporate pricing behaviour. Learn more details on the March 6, 2024 rate announcement.

This marks the Bank’s fifth time holding the rate steady. The rumour mill’s churning, hinting at possible rate cuts later in the year. If inflation behaves, we could see some relief for mortgage holders. And hey, good news alert! Inflation and GDP growth have been behaving lately, leading to lower yields.

Five-year fixed mortgage rates are slowly descending, bringing a sigh of relief to those in the market for a new home or gearing up for a mortgage renewal this year.

So, mark your calendars! The next rate announcement is scheduled for Wednesday, April 10, 2024. Stay tuned!

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